A recent UK Government study shows that more and more people are turning to buy to let properties to boost their retirement income.
Every few tears, the government does a deep dive into the statistics relating to the private rental sector. Their English Private Landlords Survey was published last month, which showed a substantial number of investors using property as part of their retirement planning.
When asked their reasons for investing in buy to let, 54% considered their properties as "a long term investment to contribute to their pension".
This is further borne out by the age demographic of property investors.
A higher proportion of investors now own more than one property. In 2010, 78% owned a single property. This has since fallen to 43%. The largest growth is in investors owning two to four properties, now representing 39% of landlords.
Inflation has reduced the real value of people's pension funds by some 8% over the last year. The value of property, and the income from it, tends to keep pace with inflation over time.
We would never argue against a well structured pension plan, particularly one which attracts employer contributions or tax relief, however we firmly believe that property can play an important part in providing a diversified retirement income.